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Production Cycle: Fixed Capital Stock Circulating Capital

The production cycle refers to the period of time that raw materials and products remain in the production process from start to finish of manufacturing. This includes both working time as well as interruptions from natural processes, the nature of materials, or aspects of technology and organization. Shortening the production cycle through advanced technology and automation can accelerate output, improve capital utilization, and increase turnover rates under different economic systems.

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Zenn Vanrim Lopez
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44 views

Production Cycle: Fixed Capital Stock Circulating Capital

The production cycle refers to the period of time that raw materials and products remain in the production process from start to finish of manufacturing. This includes both working time as well as interruptions from natural processes, the nature of materials, or aspects of technology and organization. Shortening the production cycle through advanced technology and automation can accelerate output, improve capital utilization, and increase turnover rates under different economic systems.

Uploaded by

Zenn Vanrim Lopez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Production Cycle

the period during which the objects of labor (raw products and materials) remain in the
production process, from the beginning of manufacturing through the output of a finished
product. In addition to the working time, the production cycle includes interruptions in
production owing to physical, chemical, and biological (natural) processes (for example, the
period required for tanning leather); the character of the objects of labor; or the technology and
organization of production.
The production cycle represents part of the production time, excluding the period during which
the objects of labor are in production reserves. The reduction of the production cycle accelerates
the output of products and contributes to the better utilization of productive capital (seeFIXED
CAPITAL STOCK; CIRCULATING CAPITAL), to the acceleration of the rate of turnover of circulating
capital under socialism, and to the turnover of capital under capitalism. The most important
factors for reducing the production cycle are the introduction of advanced technology and the
automation of production processes.

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